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Below is an Interesting article I found, which says that.....Do not 6 F& D% G r7 l# l" p, r+ ?( T2 Y
expect much from Crude Oil producers and future is not with the
8 O/ c1 s! o: W2 z* C8 A7 u2 C( ycompanies producing Jet fuels but Biofuels. Also no wonder if some of
2 t/ Y+ L) L2 u3 i, @5 Othese oil producer will go bankrupt or out of the business even if 3 d0 n5 V* q* }# Z# w
crude prices improves. This implies also to good names such as Shell, ' d% M; p! V" ?! M
EXXON, BG, BP, Cheveron ....xyz.. oils & g0 q# Z/ k5 L' R% e
& h# }' ?) h; z6 v) DRecently OPEC reduced crude oil production twice over just a few + @) M8 T# v2 z
months. There are three wars going on in Gaza, Iraq and Afghandistan.
& @/ ~8 u% f# H( H7 u, MA year ago these things would have spiked the price of crude oil by at
- }) n* A5 i& C1 Q a, x# z( Z# Kleast $50.00 per barrel. Today, oil price declined by a record amount. , Z7 v- L0 T/ | F$ X
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. @; H% {& b5 v: t7 M6 D( G- {There are several reasons the price of oil is decreasing in the face
) }+ X# f: f i( ?4 Wof so much news. These reasons are: / i: S+ K& }# a2 U
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) F3 M; z' u3 n. Z; F1. New oil has been found in Canada, Montana, North & South Dakota and
2 c$ U" g2 S5 B4 j" @; Q8 Nin the ocean near Brazil. Each of these oil fields has more oil than
6 v% \$ Y6 I( ~" Z$ A- KArabia.
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2. New natural gas has been found in Pennsylvania and West Virginia.
! u1 r0 n* `5 k5 zThis is the largest find in North America.
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) V2 v6 n( b: C3 `% b: D3. New methods of injecting CO2 and surfactants into oil wells is
$ S) ^/ g: x$ K( bbeing used to double their output. 0 X; y5 A5 W7 |1 e; w7 O3 t
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4. Production of bio-fuels is beginning to reach critical mass. Bio 9 G* L; v) E1 x1 r
fuel is being produced from many plants and algae. The production
# M; l4 D8 |% _0 Z8 x3 kpotential per acre in some cases is astounding. Many countries are
/ p% r. r" X' s6 A; Oracing to produce bio fuels. ! O, b2 @$ M3 l( A6 A# b& V$ U
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5. Virtually every restaurant in the US and all food processing plants
; r+ Z/ u- _+ z3 l: y8 pare now selling their used oil to bio-diesel producers. Every pork, : x0 \7 R5 D C1 R/ z8 H u l
cattle, turkey and chicken processing plant will soon sell their fat + u. k+ {- Y; V
to bio-diesel producers. One pork processing plant in Oklahoma is
) k9 {: T" G2 ?, mproducing 30,000 gallons of bio-diesel per day from pork fat. ) }# }/ Q! m' f
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6. There are 99 nuclear reactors in various stages of planning and
6 f% g9 U( N* |! ?construction around the world at this time. Several hundred more are - Y6 T6 A7 x- A' x
expected to be built in the future. Much of the energy they produce 7 A- F3 K- D+ }2 B1 F+ }+ S ^
will replace oil.
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) y$ B' F, \4 h; X9 T) H7. Every company in any form of transportaion business is replacing S) o4 Q! f4 {3 S
older equipment such as trucks, airplanes, train engines, ships, etc.
2 a) o& t' C; A% a/ m3 u" _6 d4 {( ~with new more fuel efficient equipment. Airlines and railway companies
6 R6 X0 {, p' }7 b3 i. D% f5 n' rare experiencing 20% to 25% better fuel econony with the new
# o9 a- x; x) Q, H4 ^equipment. 9 p7 r) F! A0 _, G- q
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: w) n1 q( ?' N rAirlines are flying airplanes with bio-fuel. They are finding the bio- ) F- Z* k8 g, D2 G8 Y& T
fuel is cleaner and performs better than jet fuel.
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8. Cities and counties throughout the US are selling the rights to ' f5 w; l. o& q3 r% _3 l
capture methane gas from landfills. This is a huge source of gas 0 B( o( w8 v) v4 ?! k
available at very little cost or risk. The gas is displacing crude : S( q, m' o* {! `
oil. 7 u; O0 ^. D% ?9 r& Q
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, f5 n! m- i0 u# _% @9. Coal is being transformed into a clean burning liquid fuel. The CO2
6 Y0 k/ m, s* _! n7 Q# M1 [0 t5 Aproduced as a byproduct is sold to oil companies for injection into
4 i. k4 B" E! v( Q9 A5 L2 Foil wells.
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10. Solar, wind and ocean energy is displacing oil as an energy
. A; z/ A: _& X+ R! d# csource. Three new wind turbines are being erected every day in the US.
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Each of the above by itself will not make a large difference in the 4 S6 R9 [* `: ]
price of crude oil but the sum of all of them together is world
5 q* d9 T% x i9 [' p4 Uchanging. The important thing is that OPEC no longer has the ability & ]$ R; N: a6 l0 e6 t% _- P
to control oil prices. & B1 f) l. o' d7 _
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; V* \' G; ^& R& qWith the above scenario, I still believe that there are under / P) Y! j+ f) @1 c
performed OIL companies and probably they are yet to get the justified 9 {# m+ z% T& j* C \
value ..... ) ?5 S% ?4 Y0 V
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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The above articles are from WSJ .............PUBLISHED ON 9TH JAN 9 V9 a4 j/ v7 U* D
2009 ... FYI-Only |
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